Canadian Stocks Pull Back Sharply Following Yesterday's Rally

(RTTNews) - Canadian stocks moved sharply lower during trading on Thursday, giving back ground following the spike seen over the course of Wednesday's session.

After soaring 1,220.13 points or 5.4 percent to 23,727.03 on Wednesday, the benchmark S&P/TSX Composite Index plunged 712.16 points or 3.0 percent to 23,014.87.

The sharp pullback on Bay Street came as traders looked to cash in on the surge seen in afternoon trading on Wednesday after President Donald Trump announced a 90-day pause on new "reciprocal tariffs."

Ongoing concerns about rising trade tensions between the U.S. and China also weighed on the markets, as Trump excluded the country from the pause and even raised the tariff on Chinese goods to 125 percent.

Uncertainty about what will happen between now and the end of the 90-day pause may also have led to some apprehension among investors.

Energy stocks led the pullback as the price of crude oil showed a substantial move back to the downside following Wednesday's rebound. Reflecting the weakness in the sector, the S&P/TSX Capped Energy Index plummeted by 6.6 percent.

Significant weakness was also visible among technology stocks, which helped lead the rally seen over the course of the previous session.

Healthcare, financial, real estate and industrial stocks also saw considerable weakness, while gold stocks bucked the downtrend amid an extended rebound by the price of the precious metal.